MercoPress. South Atlantic News Agency

Car-making blooming in Argentina

If local governments lowered their taxes, carmaking companies would have fewer costs, thus boosting the industry, Zuppi argued

Argentina's automotive sector saw significant growth last month, with production reaching 42,419 units, a 41.1% increase from January and 13.1% higher than February 2024, according to a report released Friday by the Association of Automotive Manufacturers (ADEFA). The document also showed that exports rose to 22,496 vehicles, up 102.1% from January but down 4.6% compared to February 2024. In addition, Wholesale sales to dealers also surged, totaling 45,617 units, a 33.8% increase from January and 37.3% higher than the previous year.

Over the first two months of the year, production grew by 20.5% to 72,477 units, while exports fell by 13.5% to 33,628 units compared to the same period in 2024. Sales for January-February reached 79,706 units, up 62.1% from last year.

ADEFA President Martin Zuppi attributed the strong performance to recent tax reductions by the national government, urging provinces and municipalities to adopt similar measures to further boost competitiveness.

Additionally, Zuppi urged provinces and municipalities to adopt similar measures. In Argentina, taxes are levied at multiple levels—national, provincial, and municipal. If local governments also reduce their taxes (e.g., property taxes, local fees, or sales taxes), it could further decrease costs for automotive companies and strengthen the industry’s export profile.

“With 18 working days of activity and even with some plants in recess due to vacations, as well as due to adaptation processes for new investments, the sector recorded a good performance in line with what was anticipated last month,” Zuppi said.

“It is positive to observe the progress in the agenda items we have been working on together with the authorities. Any reduction in the tax burden generates an improvement in competitiveness and recovery of activity levels in all its variables,” he added while stressing the importance of provinces and municipalities joining in “to continue strengthening the export profile of the industry, guaranteeing its long-term sustainability.”